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Pernod Ricard switches more of its advertising budget to digital and social media

Published:  28 November, 2013

An increasing proportion of Pernod Ricard's UK advertising budget is being spent on social and digital media, as traditional media consumption continues to decline, according to managing director Denis O'Flynn.

Currently around 20% of the company's total  advertising spend is earmarked for new media, up from 15% last year, and this continues to increase annually as the popularity of traditional media such as newspapers and scheduled TV falls away. "As traditional media consumption drops, we have had to divert funds to different platforms," he said.

"There is a very definite shift towards digital and social media;  young people nowadays don't watch TV the way we used to, they watch what they want, when they want, so there's no point in advertising via traditional media in an attempt to reach them.

"This allows us to pinpoint more precisely our target audience and enables us to get a better return on our investments. If I'm looking for 25 - 45 year old males then I can come up with a very specific platform to hit them via social media."

Pernod Ricard is once again, from December 1, teaming up with the nationwide breakdown service, the AA, for its annual Christmas responsible drinking campaign which is aimed at younger consumers, and will be aired on Spotify, the music streaming channel. "You can pay £10 a month to avoid the ads on Spotify, but younger consumers don't so if you want to target them you've hit a sweet spot." 

Facebook has been another successful social media site  for the drinks company, with a recent posting over Guy Fawkes night for a hot toddy made of Malibu and chocolate receiving more than 5000 hits within 24 hours. 

Another example of campaigns being tailored more precisely to their target audience is the long running Martell jazz campaign on BBC Radio 2 which is aimed at those baby boomers born between 1945 - 1965, featuring artists Jamie Cullum and Katherine Jenkins.